Strategic Management And Business Policy - Myassignmenthelp.Com

Question: Discuss About The Strategic Management And Business Policy? Answer: Introduction The purpose of this task is to provide a brief overview of the success story of the company Carsales; the organization took a major step to initiate their business online. CEO Greg Roebuck took a major decision of innovating the business and using different strategies in the field of internet. Further, the company analyzed the marketing and then implemented strategies for the success by risking their business. The risk successfully helped the company to grow in the target market. The below mentioned answers talk about the activities of business which helped them to survive. Strategic Management Approach of Carsales Strategic management refers to the process of implementing and formulating activities in the management in such a way that competence is achieved by the organization. The strategic management approach in an organization helps them to consider the external and internal environments and implement goals in such a way that the organization earns a competitive advantage. Further talking about the case study, it shall be noted that Carsales is a company which was founded with a small motive to provide the car ads in a more classified manner. The organization strategically evaluated all the factors affecting the growth of the company and which can help them to sustain in the market. With this process, they created a goal for the organization that competes with the largest competitor present in the industry and list 3000 cars in the website of the company (Robbins, et. al., 2016). Further, in order to satisfy the goal, the management analyzed the market feature which can help them or act as a barrier to their growth. Internet was not accessible by all at that time, and the company majorly focused on developing the business online. This analysis helped the company to gain information about the competitors prevailing in the market and the internal and external factor which can help in the sustainability of the business. Afterwards, CEO Greg initiated strategy formulation under which they formed the strategies to review the information gleaned from the crux of the analysis (Carsales 2018). This step of the company helped them to determine the resources and strategies which they shall use to reach the defined goal of the organization. So, under strategy formulation, the initial strategy which the company decided was to innovate the business practices of the company by implementing technological process under them. The strategic formulation of the company reflected three aspects which they wanted to include in their business process that is, development and improvement of quantity, quality and consistency of information in the classified. So, in order to change the ways of posting ads on newspaper, the company formulated strategies (Hill, Jones, and Schilling 2014). While considering all the above mentioned aspects, the company created strategies which were implemented successfully. CEO Greg analyzed the business opportunities and efficiently worked on them to create identification in the market. The management then created unique selling points in their business which helped to consistently make use of all the available resources and change the phase of classified ads in the market. These attributes of the company were successfully utilized by to promote success for the business. The first USP of the company was their business model; the model of the company motivated them to carry on their business activities on the internet. Until that time, very few people used the services of internet so the company targeted the particular section of the market that was using the internet. Further, they promoted their activities and added an attractive feature in the classification of ads like flat fee till the purchase of car by the customer which helped t hem to grow rapidly (Goetsch, and Davis 2014). Other USP of the company that is using specialized technology to create high-quality ads helped them to create distinctiveness in the market. As no company present in the market was using the internet to post ads due to which the company gained the first mover advantage in the market and succeed as well. The third USP of the company which was to use innovation so as to continuously provide customer a better experience while working with them helped Carsales to fulfill the goals as well. Also, the third USP helped the company in long-term planning and sustainability of the business (Ginter, Duncan, and Swayne 2018). Development and sustainability of competitive advantage gained by Carsales Competitive advantage refers to the process of gaining an advantage over the competitors in present in the market. An organization can create competitive advantage by providing satisfying products and services to the customer present in the market. Further, it shall be noted that it is easy for an organization to gain competitive advantage in the market it is more important for them to maintain sustainability in the competitive advantage gained by the company. Sustainable competitive advantage helps an organization to create own way in the market maintain a fixed position as well. Further competitive advantage can be gained by focusing on three aspects that are, cost leadership, focus, differentiation and differentiation (Wheelen, and Hunger 2017). Cost leadership refers to the ability of a business to introduce their product in the market with low cost or the cost less than what the competitors are offering. Low cost will increase the level of profit for the company and will also increase the level of satisfaction for the customers as well. Further differential strategy refers to the process of differentiating the products and services offered by the company in the market. This aspect attracts the customers towards the high quality, innovative and attractive products and services in the market. Lastly, the focus strategy refers aims to initiate their focus on a particular segment of the market not everyone (Grefrath, Wagner, and Stermann 2017.). This strategy is applied when the company or customer do not enough resources to target the whole market so they target a particular segment. The company Carsales used the differential focus strategy to gain the competitive advantage in the target market. With the differential strategy the company implied differential qualities in the services which they serve in the market and with the focus strategy, they only targeted the people who use the internet in their lifestyle. The company earned value in the market by adequately providing quality services to the customers present in the market. The company used innovative technology to attract the customers in their market due to which people started using internet using their website as well. Apart from that, the company also gained the first mover advantage in the market (Schaltegger, Burritt, and Petersen 2017). Nowadays many organization try to replicate the business process which was used by Carsales in the market, but the company can still maintain their identified position in the market. Carsales can maintain their image in market by expanding their business and regularly providing quality services to the customers. The company is diversifying their business into new channels, markets, and geographic regions. Expansions will the help to gain fixed position in the market, as Carsales hold goodwill so they will not face difficulty in diversifying their business (West, Ford, and Ibrahim 2015). Also, the management continuously focuses on new opportunities present in the market and monitors them so as to improve their current position. Further the organization also repeatedly aims to create a benchmark against their competitions which will easily show the customers the value of both companies in the market. Thus in this way, the Carsales continuously tries to use new technology and serve the ir customers in a better way to gain sustainable competitive advantage (Moriarty, et. al., 2014). Reason for success of Carsales The fact shall be noted that no operations can gain success in the market just because of the sources present in the internal market or external prevailing factors. Both factors together help the company gain competitive advantage. Like, if the company aims to use the internet to promote the services and the customers present in the external market do not use the internet then even if the company would try to provide the best of their services; still, they won't be able to make sales. Thus, it is said that both the factors together create success for the company in the market (Grant 2016). Similarly, in the case of Carsales, the company earned competitive advantage with the use of both available sources in the market. Internal sources helped the company in such a way that it helped them to implement and formulate strategies according to their goals and objectives. Also, the employees (human resource) supported the CEO in implementing their goal into success. The employees provided quality services along with internet services due to which the customer got attracted in the market. Further talking about external services it shall be noted that the company gained the first mover advantage in the market. Apart from that segment of customers using internet helped them to increase their sales and initiate success in the target market (Lewandowski 2016). Thus, in this way both the services together initiated sustainability of the company in the market. Further external factors like, internet and interest of customers on the internet helped them to raise the interest of target customers and promotes sales; due to which subsequently the company earned profit in the market (Grant and Grant 2016). Helpful SWOT Analysis in the grow of Carsales SWOT analysis of Carsales is discussed below: Strength: The major strength of the company was differentiation in the services provided by them. As till that time no company was providing car sales ads on the internet, due to which the company gained the first mover advantage as well. Further technology and innovation acted as strength for the company to reach the target customers. Weakness: Weakness of the company is increasing competition in the market. The threat of new entrants in the market can affect the current position of Carsales in the market (Aguirre, et al., 2015). Opportunities: The Company has the opportunity to grow their business in the international market. As Carsales has now earned a reputed position in the domestic so the company gains the opportunity to target the customers in international market increase sales as well. Introduction of new products can also help Carsales to grow rapidly. The company can promote other vehicles also apart from the car, like boat, motorbikes etc. This will increase the target market for the company and the customers as well. Threat: The biggest threat to the company is the threat of replication of their business. Now days emerging business can replicate their business model and increase their sales in the market. Further rapidly growing technology can also act threat for the company. It can make the activities of the company inefficient (Hsu and Pann 2017). The SWOT analysis helps an organization to understand both internal and external factor affecting the growth of the company in the global market. So, the SWOT analysis of Carsales will help Greg to look after the strengths of the company and apply them properly in the management to attain growth. Further, the threat and weakness will help Greg to evaluate the ways in which he can save the company from these risks. SWOT in an internal as well as external analysis, so it will tell the company about the internal factor which can adequately use and areas where they need to focus. And it also tells about the external aspect which can act as an opportunity for the company to sustain their competitive advantage in the market. The threats will help the company to analyze the growing competition in the market. Thus, in this way, SWOT analysis will become helpful for the company to grow in the market (Sadhasivam, and Priya 2015). Conclusion Thus in the limelight of above mentioned events, the fact that shall be noted is that the Carsales has successfully made use of all the available resources and capabilities to increase its success in the external environment. The aforementioned task talks about the success of the company and its reason and strategic implementation which they used to gain success. It also explains the SWOT analysis which the CEO can use to promote their product in the market. References Aguirre, E., Mahr, D., Grewal, D., de Ruyter, K. and Wetzels, M., 2015. Unraveling the personalization paradox: The effect of information collection and trust-building strategies on online advertisement effectiveness.Journal of Retailing,91(1), pp.34-49. Carsales., 2018. Our Company. Viewed on January 23, 2018 from https://www.carsales.com.au/carsales-info/about-carsales Ginter, P.M., Duncan, J. and Swayne, L.E., 2018.The Strategic Management of Healthcare Organizations . John Wiley Sons. Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper Saddle River, NJ: pearson. Grant, R.M., 2016 Grant, R.M., 2016. How smart, connected products are transforming companies.Harvard Business Review,93(10), pp.96-114. Grant, R.M., 2016.Contemporary strategy analysis: Text and cases edition. John Wiley Sons. Grefrath, C., Wagner, D. and Stermann, S., 2017. Products and Services in a Sustainable World. InValue Networks in Manufacturing(pp. 65-72). Springer International Publishing. Hill, C.W., Jones, G.R. and Schilling, M.A., 2014.Strategic management: theory: an integrated approach. Cengage Learning. Hsu, J.L. and Pann, J.H., 2017. Subsequent Reaction to Online Advertisement Disturbance.International Journal of Business Administration and Management Research,3(3), pp.1-6. Lewandowski, M., 2016. Designing the business models for circular economyTowards the conceptual framework.Sustainability,8(1), p.43. Moriarty, S., Mitchell, N.D., Wells, W.D., Crawford, R., Brennan, L. and Spence-Stone, R., 2014.Advertising: Principles and practice. Pearson Australia. Robbins, S P., DeCenzo, D., Coulter, M Woods, W., 2016. Management: The Essentials, 3rd edn, Melbourne, Pearson, Viewed on January 29, 2018 from https://revel.pearson.com Sadhasivam, P. and Priya, A.N., 2015. A Literature Review on the Impact of Television Advertising Vs. Online Advertisement among Consumers.International Journal,3(10). Schaltegger, S., Burritt, R. and Petersen, H., 2017.An introduction to corporate environmental management: Striving for sustainability. Routledge. West, D.C., Ford, J. and Ibrahim, E., 2015.Strategic marketing: creating competitive advantage. 3rd edn, (pp. 28-218). US, Oxford University Press. Wheelen, T.L. and Hunger, J.D., 2017.Strategic management and business policy. pearson.